Overnight Finance: Goldman Sachs alums in both Clinton, Trump camps

CLINTON, TRUMP CAMPAIGNS BOTH HAVE GOLDMAN SACHS TIES: Hillary ClintonHillary Diane Rodham ClintonMueller moves ahead with Papadopoulos sentencing What's wrong with the Democratic Party? Just look at California BBC: Ukraine paid Cohen 0K to set up talks with Trump MORE and Donald TrumpDonald John TrumpDems seek to chip away at Trump’s economic record Trump to sign directive to reform commercial space regulations Trump on collision course with Congress on ZTE MORE have at least one thing in common: they're both turning to former Goldman Sachs executives to help lead their campaigns.

Trump announced Thursday that he has hired Steve Mnuchin as his national finance chairman, citing in part his "extensive and very successful financial background."

Mnuchin currently heads his own private investment firm, Dune Capital Management, but spent 17 years at Goldman Sachs. His father, Robert, was also a longtime fixture at the Wall Street giant.

One year ago, Clinton announced that her campaign's chief financial officer would be Gary Gensler, who rose to Goldman's co-head of finance after 18 years with the firm. The Hill's Peter Schroeder tell us more about their roles and the political dangers they face: http://bit.ly/1Tq4iJk.

CONSUMER BUREAU RELEASES ARBITRATION RULE: The Consumer Financial Protection Bureau (CFPB) wants to prohibit companies from denying consumers the right to band together to settle disputes in court.

Under a proposed rule, which the agency announced at a field hearing in Albuquerque, N.M., on Thursday, companies would be prohibited from including mandatory arbitration clauses in financial contacts that deny consumers the right to join class action lawsuits.

Contracts for financial products like credit cards and bank accounts often include language in the fine print that forces consumers to settle disputes privately through an arbitrator that's often chosen by the company rather than the court system. Those clauses often prohibit consumers from joining class action lawsuits as well.

"Signing up for a credit card or opening a bank account can often mean signing away your right to take the company to court if things go wrong," CFPB Director Richard Cordray said in a statement. "Many banks and financial companies avoid accountability by putting arbitration clauses in their contracts that block groups of their customers from suing them."

The Hill's Lydia Wheeler tells us all about the rule here: http://bit.ly/1ruwXWZ.

BUSINESS GROUPS FIGHT BACK: Business groups were quick to pounce on the proposal, indicating the regulator could have a fight on its hands to get the rule through.

"This morning, the Bureau released a proposed regulation to enrich class action trial lawyers at the expense of the consumers the Bureau is charged with protecting," said Travis Norton, an official with the U.S. Chamber of Commerce, at a New Mexico field hearing on the rule.

Congressional Republicans also jumped to criticize the rule. House Financial Services Committee Chairman Jeb Hensarling (R-Texas) called it a "big, wet kiss to trial attorneys."

Sen. Sherrod BrownSherrod Campbell BrownTrump on collision course with Congress on ZTE Pa. health secretary: 'Sustainable funding' needed to attack opioid crisis The Hill's Morning Report — Sponsored by PhRMA — How long can a Trump-DOJ accord survive? MORE (D-Ohio), the top Democrat on the Senate Banking Committee, offered the counterbalance.

"The CFPB's proposal to ban this unjust and unfair practice is a major victory for consumers," he said in a statement. "I will push the CFPB to finalize the rule as soon as possible, and will fight against efforts to weaken it." http://bit.ly/1T3R6jt.

HAPPY THURSDAY and welcome to Overnight Finance, where we're wondering why Donald Trump's taco salad doesn't have any, well, salad. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.

Tonight's highlights include the details for the next summit of North American heads of state, what technology groups want from the presidential candidates and an upcoming celebrity visit to Capitol Hill.

See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

THE INTERNET OF THINGS: Join us on Tuesday, May 10 for Internet of Things: The Next Frontier in Tech Innovation. Policymakers & industry leaders will discuss public-private partnerships for developing and implementing cutting-edge mobile technologies, and the policies and regulations necessary to ensure the security of these new tools. Sponsored by Visa. RSVP here.

OBAMA HEADS TO CANADA TO HUDDLE WITH TOP LEADERS: President Obama is heading to Canada in June to meet with Canadian and Mexican leaders to discuss strengthening their economic ties.

Free trade is expected to remain a hot topic in the U.S. presidential election as Obama travels north to attend the North American Leaders' Summit on June 29 with Canadian Prime Minister Justin Trudeau and Mexican President Enrique Peña Nieto, the White House announced on Wednesday.

"The summit is further recognition of the value of a more integrated North America to advance the security and prosperity of the continent," the White House said in a statement.
"It also highlights the importance of continuing to strengthen the bilateral and trilateral ties between United States, Canada and Mexico."

The three nations are major trading partners and are part of the Trans-Pacific Partnership (TPP) with nine other Pacific Rim countries. The Hill's Vicki Needham fills you in: http://bit.ly/1Og0d9k.

FANNIE MAE SET TO PAY TREASURY $919 MILLION: Mortgage giant Fannie Mae will pay the Treasury Department a dividend next month after posting net income of $1.1 billion in the January–March period.

The government-controlled enterprise will pay $919 million to the Treasury in June following its 17th straight quarter of profits.

"We continue to run our business well while supporting the improving housing market," said Timothy Mayopoulos, president and chief executive officer of Fannie.

"The changes we have made to the company have put us in a stronger position to fulfill our responsibility to deliver safe, affordable mortgage financing for our customers, in all markets at all times," Mayopoulos said.

Concern has grown on Capitol Hill and across the mortgage and housing industries about the lack of a plan to overhaul and wind down Fannie and smaller sibling organization Freddie Mac despite several proposals in Congress. Vicki Needham explains: http://bit.ly/24AnzQk.

TECH GROUPS PUSH CANDIDATES ON TRADE, IMMIGRATION: Trade groups that represent some of America's most powerful tech companies are pushing the presidential candidates to pay attention to a slate of issues that matter to them, including limiting government access, user data and adopting trade deals.

Thirteen trade groups signed an open letter released Wednesday night drawing attention to their list of issues. The groups represent giants such as Google, Facebook, Apple and Amazon -- as well as other, lesser-known companies.

"As representatives of America's most innovative sector, we believe firmly that our greatest breakthroughs lie ahead," the groups said. "We respectfully propose the following policy recommendations, and offer our time, energy, and creativity in support of America's future."

Their policy recommendations reflect the wide-ranging priorities of internet and technology companies. The Hill's David McCabe tell us all about them: http://bit.ly/26XRXpU.

'CHEERS' ACTOR TO SPEAK AT SMALL BUSINESS HEARING: John Ratzenberger, who played Cliff on the sitcom "Cheers" and has voiced characters in every Pixar film, will speak at a House Small Business Committee hearing next week.

Ratzenberger will testify on May 12 at a hearing called "The New Faces of American Manufacturing," one of two hearings the House panel is holding next week featuring well-known small-business advocates. The committee said in a news release that the hearings are part of its celebration of National Small Business Week, which is this week while Congress is on recess. The Hill's Naomi Jagoda gives us a preview: http://bit.ly/21BeOU8.

TREASURY SANCTIONS PANAMA-BASED MONEY LAUNDERERS: The Treasury Department on Thursday announced sanctions on a drug money laundering network based in Panama.

The Office of Foreign Assets Control (OFAC) sanctioned the Waked Money Laundering Organization and its leaders as specially designated narcotics traffickers. The department also said it targeted six Panama-based associates of Waked MLO for providing support and, or acting on behalf of the organization, as well as 68 companies connected to Waked MLO.

Treasury's actions mean that assets of the individuals and companies that are under U.S. jurisdiction are frozen and that American citizens are generally barred from engaging in transactions with them: http://bit.ly/1rutEPN.

NIGHTCAP: KFC's edible nail polish is redefining finger-lickin' good.

Write us with tips, suggestions and news: slane@thehill.com, vneedham@thehill.com; pschroeder@thehill.com, and njagoda@thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill; @PeteSchroeder; and @NJagoda